Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 274 - ITAT DELHIDisallowance of Interest on old outstanding advances – Advances given for bonafide business consideration and commercial expediency – Held that:- Following the decision of the assessee as decided in earlier year the Matter remitted back to the AO for fresh consideration. Disallowance of 1/10th of renovation expenses – Allowability of deferred revenue expenses – Held that:- For allowability of deferred revenue expenditure, there cannot be different decision in every year - The Revenue should either accept the assessee's claim of deferred revenue expenditure and accordingly allow the spread-over of deduction in number of years or reject the assessee's claim and allow the deduction for expenditure in the year in which expenditure was incurred – the order set aside and the matter remitted back to the AO for fresh adjudication and the Decision of CIT Vs. Industrial Finance Corporation of India Ltd. [2009 (9) TMI 877 - DELHI HIGH COURT]. Restriction on account of consultancy charges – Held that:- The Assessing Officer disallowed the entire claim of consultancy charges on the ground that the assessee is not liable to make any payment to International Caterers Pvt.Ltd. because they have not provided any services - Jurisdictional High Court agreed with International Caterers Pvt.Ltd. and held that they provided the services to the assessee and the assessee is liable to make the payment of consultancy charges to them - the decision of Hon'ble Jurisdictional High Court is binding upon the assessee as well as the revenue authorities for computing the assessee's liability in respect of consultancy charges – the CIT(A) rightly allowed the deduction of consultancy charges – the matter remitted back to the AO to allow the deduction of consultancy charges – Decided in favour of Assessee.
|